EU member states describe former bloc president Donald Tusk as a “disgrace” after Russian oligarchs were spared sanctions for Gucci moccasins
- EU member states reject Boris Johnson’s call to expel Russia from Swift
- Former bloc president Donald Tusk describes members as “shame”
- He turned to Germany, Italy, Hungary and others after they vetoed the move
- The secure Swift messaging network forms the basis of international trade
EU member states were declared a “disgrace” by the bloc’s former president yesterday after they rejected Boris Johnsonsubtraction call Russia from the world’s largest financial payment system.
Donald Tusk rounded Germany, ItalyHungary and others have vetoed moves to oust Russia from the Swift network, which forms the basis of international trade.
Tusk tweeted: “In this war, everything is real: the madness and cruelty of Putin, the Ukrainian victims, the bombs falling over Kiev.
“Only your sanctions have been falsified. Those EU governments that blocked difficult decisions (eg Germany, Hungary, Italy) were disgraced.
As EU leaders left the Swift ban outside the “hard” package of sanctions – despite a request from Ukrainian President Volodymyr Zelensky – Italy received an exemption for its luxury goods industry.
Donald Tusk (pictured) appealed to Germany, Italy, Hungary and others after they vetoed moves to oust Russia from the Swift network, which forms the basis of international trade.
Senior sources said models such as moccasins and designer bags from Gucci were not included in the export ban measures agreed late Thursday, which focus mainly on the high-tech, aviation and energy sectors.
An EU diplomat said Italy’s argument was that a ban on the sale of Russian oligarchs “would be largely symbolic”.
But high-ranking Italian government sources reacted fiercely, saying that the country’s Prime Minister Mario Draghi “did not seek to limit Italian luxury goods – this is definitely not true.”
Mr Draghi also sparked a dispute with Zelensky after telling Italian lawmakers that the Ukrainian president missed a scheduled phone call yesterday because he was “hiding somewhere”.
Mr Zelenski tweeted details of heavy fighting in his country, including deaths, before adding sarcastically: “Next time I will try to reschedule the war to talk to Mario Draghi at a specific time. Meanwhile, Ukraine continues to fight for its people. “
Mr Zelenski called on European Commission President Ursula von der Leyen to support Swift’s ban on Russia, saying: “Not all possibilities for sanctions have been exhausted yet. The pressure on Russia must increase. “
Latvian Deputy Prime Minister Artis Pabriks condemned the nations that blocked the move, saying: “Some people in Europe are afraid of losing money, while others in Kiev have to die.”
Boris Johnson (pictured) calls on allies to support Swift ban, saying only toughest economic sanctions will have any effect on Vladimir Putin
Johnson called on allies to support Swift’s ban, saying only the toughest economic sanctions would have any effect on Vladimir Putin.
The prime minister raised the issue at a G7 summit on Thursday and again at a crisis summit of NATO leaders yesterday.
He also raised the issue in one-on-one talks with fellow leaders, including German Chancellor Olaf Scholz, warning him: “Inaction or insufficient reaction from the West would have unimaginable consequences.”
A government source said Mr Johnson “will continue to insist very strongly on this”.
And Defense Secretary Ben Wallace said yesterday that Britain would “work all day” to “shut down the Swift system for Russia.”
EU leaders have spoken out in public about their opposition to Russia’s expulsion from Swift. But diplomatic sources said several countries were worried about cutting off gas supplies from Russia.
Diplomatic sources said that US President Joe Biden was sitting on the fence on the issue of the G-7 summit on Thursday.
He cited EU concerns as a reason not to ban.
Questions and Answers: WHAT CAN THE SWIFT BAN FOR RUSSIA MEAN?
What is Swift?
The Global Interbank Financial Telecommunications Society (Swift) is a secure messaging system used by banks to make fast cross-border payments.
The Belgian-based system processes about 42 million messages a day and is estimated to account for about half of all major international remittances.
Will Russia’s ban hurt?
Proponents of a ban on Russia’s Swift payment network, including Boris Johnson and Ukrainian President Vladimir Zelensky, say it would cripple Moscow’s ability to trade, cutting off vital oil and gas revenues.
An analysis of Swift’s ban on Iran in 2012 shows that Tehran has lost half of its oil export revenues and 30% of its foreign trade.
Who is blocking the ban?
Several leading EU countries oppose the move, including Germany and Italy. They have not given a public reason, but are of course concerned that this could lead to a halt in the supply of Russian gas on which they depend.
Germany receives 49 percent of its gas from Russia and Italy 46 percent. France, which said yesterday that the ban on Swift should be a “last resort”, received 24 percent.
Can Russia cope?
Russia tried to set up its own payment system when it was threatened with a Swift ban over its annexation of Crimea in 2014, but struggled to gain international recognition.
Some countries, including the United States, are concerned that Moscow and Beijing may try to build a competitive payment system if Russia is excluded, which they say could weaken Western influence in the long run.
Will it happen?
EU leaders have effectively vetoed a ban on Russia from Swift for now. But Mr Johnson, along with like-minded people in countries including Canada and Lithuania, are pushing for the issue to be reopened.
US President Joe Biden has said he is ready to reconsider if the EU gives up resistance.
Ukrainian leaders have warned that without him, Vladimir Putin will deviate from the impact of other sanctions.
Advertising